Cryptoacademy Academy: Season 3 Week 5||Homework post for [@yousafharounkhan]|| Golden Cross ,Death Cross and Binance P2P trading

As-Salamu Alaykum

Define Death Cross and Golden Cross in your own words. And what is the significance of DC and GC in trade? And what effect do the two have on the market. (In your own words)

In the trading world, analysis is always important as it gives us the trend of the market in the long term as well as in the short term, and for that matter, the Moving Average (MA) is an essential indicator for our analysis.

The Golden Cross

It is a type of indicator that typically indicates a trend shift from a down trend to an up trend. Simply put, this is when the 200-period moving average surpasses the 50-period moving average, it gives us the impression of a golden cross and, for that matter, an upward trend in the market. As the golden cross indicates an upward trend and, for that matter, the bull market, this is an excellent opportunity for traders/investors to open a position and reap the most benefits from the upward trend of the market.

Death Cross

As there is a positive aspect to the moving average indicator, there is a negative aspect as well, which is the death cross.
The Death Cross is also a type of indicator that typically indicates a shift from an up trend to a down trend. Simply put, this is when the 50-period moving average is below the 20-period moving average. In this instance, it signals a bearish market and it triggers traders to sell off their assets. It is also a good opportunity for other investors to buy more of the assets at that instance, which is considered as the dip.

And what is the significance of DC and GC in trade?

Most traders and market analysts can use the DC and GC to determine the best time to take a stake in the market and exit the market. As the two crosses serve as an indicator to predict the market trend, be it an upward or downward trend, traders are able to have a better understanding of the market and whether to sell or buy more hold (Hodl) for the future to make more profit. The two moving averages are extensively used as they assist us in categorizing a large amount of data in order to find the most substantive investment in a digital asset or investment.

Effects of Golden Cross and Death Cross on the market

The correlation between the long and short moving averages creates a golden cross and a death cross, implying that the stock is likely to go up or fall. If the golden cross takes place, the market is likely to be replaced by a bullish trend. We know when there is a bullish trend, many traders will like to take a stake in the market, thereby increasing the demand for the market and the prices will likely rise. And the opposite goes for the death cross, as it indicates that a shift from an up trend to a down trend means we might experience a bearish market. As the sole interest of every trader is to make profits, they will like to exit at this point to make a bit of profit before they make losses.

QUESTION 2:
Explain the points given below.

How many days moving average is taken to see Death cross and Golden cross in market for better result and why?
How to see death cross and golden cross on the chart.
Explain Death cross and Golden cross on the chart, (screenshot necessary)

How many days moving average is taken to see Death cross and Golden cross in market for better result and why?

Both the death and golden crosses are identified with the used of the lines called the moving average lines. In both cases, a shorter days and longer days Mas are compared. The 50-days MA which is approximately 10 weeks is typically used for the short days moving average(MA) and the 200 days for the long days moving average line. These two Mas serves as benchmark that many traders and market analysts follow in determining the DC and GC. However, others may use different moving average lines for their analysis but when the right MA is not used, it is likely to yield a lagging result. Most commonly used MAs apart from the 50- days and 200 days MAs is the 20-days and 50days MA and also 50-days and 100days MAs but some of these can bring wide gap between the lines which will end up not giving clear results. Hence, the most accepted and widely used is the 50-days across 200-days moving average

How to see death cross and golden cross on the chart.

Explain Death cross and Golden cross on the chart
There are so many ways through which we can see the DC and GC but I am going to demonstrate it here using the tradingview.
These are the steps you can take to see the DC or GC of a particular coin of your choice.

1. Visit tradingview by searching it on google like I have done in the picture below.
   
   
   
2. The homepage of the site will be opened. Click on charts at the top of the homepage and it will toggle to the chart section.
   
   
   
3. The title of the chart is at the top left of the chart. Click on it and select the crypto coin for your analysis by searching it.
   
   I have searched ETH/USDT as the chart I am going to use
   
   
4. Click on the indicators labeled "fx indicators" and search for and click for "moving averages". The chart should contain two moving averages and change the length of both MAs to 50-days and 200-days respectively.
   
   
   
   
   
5. Now observe the points of intersection of the two lines. These points indicate if the cross is a golden cross or gold cross. The chart below is a consists of such crosses and I have labeled the type of cross formed at the respective points. In the picture below, as a point on the chart, the green line (50days MA) rose over the redline (200days MA line) hence, a golden cross is formed

Spotting The Golden Cross on chart

On the chart, the golden gross is formed when the 50-days MA line rises above the 200-days MA line. At this moment, it means the price is in positive development, which calls for a rise in both the 50-days and 200-days MA lines. Since the 50-days MA line is the short-term MA, it is fast to rise above the 200-days MA. Hence, a golden cross is formed.

The picture above is ETH/USDT chart, as I have indicated, the green line (50day MA line) rise over the green line (200-days MA line) at A. Hence, the golden cross was formed.

Spotting The Death Cross on the chart

In contrary to the Golden cross, the 50-days MA line (the green line) falls below the 200-days (the red line) MA line to form the death cross. Fall in price will result the fall of both MAs but the 50-days MA line because it’s in the short term falls fast below the 200-days (red line) MA line to form the death cross.

The death cross was formed in the above picture at the point B where the red line(50-days MA line) fell below the green line(200-days MA line) and the death cross was formed.

QUESTION 3: What is Binance P2P and how to use it ?
How to transfer cryptocurrency to p2p wallet?
How to sell cryptocurrency in local currency via p2p (any country or coin)(screen shot neccessary to verify account)

The introduction of Binance exchange to the world of crypto currency, has made the crypto world an interesting and fun place to be and even made it simple for most countries to trade cryptocurrencies in their respective local currencies, all thanks to the introduction of the Binance P2P feature on its exchange platform.
Binance P2P is a feature on the Binance exchange which simply denotes Peer-To-Peer. As the name simply implies, when two parties interact over a network to buy and sell directly with each other without the intervention of a third party, it is termed as peer-to-peer. With that being said, let's know what Binance P2P is all about.
Binance P2P is a feature of the Binance exchange platform which permits its users to buy and sell crypto currency assets in their local currencies. Users of Binance P2P are offered the opportunity to link their local mobile wallets to the P2P platform to enable them to make payments to their peers and receive payments from their peers as well for the sale of their crypto currency assets. As earlier stated, the Binance exchange has made it simple to use the P2P feature. To be able to use this feature, you first have to link your mobile wallet and verify it as your mode of payment and receiving method. From their, you can now transact with peers over the platform who sell or buy crypto currency assets with their advertisement sections with assets with their respective offerings and rates at which they sell or are willing to buy.

How To Transfer Cryptocurrency To P2P Wallet

my verified account

• Click on the wallet on the menu bar, then Locate and click on Transfer at the top

• Select the type of cryptocurrency asset you would like to transfer to the P2P wallet, i.e ETH, then key in the amount you would like to transfer and then Click on Transfer to complete the process.

transfer confirmation

Note: You can as well transfer funds from the P2P wallet back to the spot wallet, by repeating the same steps but from the P2P wallet.

How To Sell Cryptocurrency In Local Currency via P2P (any country or a coin)
With the introduction of the P2P feature on the Binance Exchange, we can receive funds in our local currencies within the blink of an eye. I will demonstrate how to sell cryptocurrency in our local currency, Ghana Cedis (GHS). Follow these simple steps.

• From your P2P wallet, locate and click on the sell button and as well, click on the assets you would like to sell.

• A list of buyers of your cryptocurrency asset will be displayed with their respective rates and limits. From there, you can carefully pick any of them and click on the sell button. One thing you always take notice of the buyer. Check to see whether the person is verified by binance as they are sometimes trusted.

• Key in the amount you will like to trade out, the amount you will be receiving in your local currency will be displayed for you to know the amount you will be getting and then select your payment method linked to the P2P wallet and click on the Sell ETH button.

• A new window will be displayed, which is called the trade window, showing the transaction time. You patiently wait for the buyer to transfer the money onto your mobile wallet and when you get an alert of a deposit in your mobile wallet, check to see whether it is real. When you confirm that, you will be instructed to release the funds to the buyer after confirmation by entering the OTP sent to you. If you did not receive the money in your mobile wallet, do not release the funds to the buyer.

What are the things to keep in Mind during P2P trade and describe its four advantages and disadvantages (own words).

Things To Keep in Mind During P2P Trade

• When you receive an alert about a deposit on your mobile wallet, always make sure to confirm whether it is true by checking your balance, as some people can just create such messages on your mobile wallet.
• People use Binance P2P to take advantage of people, so always take your time before making a trade, because the rate at which people get defrauded is very high.
• In initiating a trade, make sure the buyer is always verified by Binance.
• Always take notice of the buyers' mobile number and the name assigned to the mobile wallet.

Advantages and Disadvantage of P2P Trade

Advantages	Disadvantages
There is no involvement of third party	Fraudsters account can be frozen
Binance P2P offer variety of Payment options	No compensation in the instance of a fraud
OTP verification is always required to complete a trade	A buyer may not respond quickly to your trade and its always difficult to Cancel the trade unless the Tim elapses
Binance P2P is very simple to use and transactions are Secured	There maybe delays in transaction authentication verification

CONCLUSION

To conclude with, i will like to say this lecture has been an eye opener to the use of the Golden Cross and Death cross analysis and i will like to admonish my colleagues to always take extra precautions in Binance P2P trade as there are many people out will always like to take advantage of them.

Thank You

Cc:
@yousafharounkhan